I am looking for some advice...
I was in the process of purchasing a home when the seller failed to fulfill their obligations under our contract, so I forwarded an agreement for mutual release, requesting our earnest money back.
The home inspection report, stated that Radon levels were 3 times the EPA recommendations for residential homes, there was a leak in the roof which caused pretty severe rot, the water heater needed repair and a few other misc. items need repair/replacement.
Countering back to the seller because our agreement stated that the seller had the right to cure any defect, the seller agreed to the following in writing:
1. Install a mitigation system that will correct Radon levels to below EPA standard of 4pcl and to an agreed upon position and location prior to installation.
2. Repair all items that need to be fixed in the inspection report.
3. Present a report detailing the work done 3 days prior to closing.
4. Close on 9/21/06.
Needless to say, we were never consulted regarding the Radon Mitigation System. In fact, it was nearly impossible to gain access to the property to get any work done. Our loan officer called us 4 days prior to closing and stated that the appraiser had unsuccessfully tried to get into the property 2 times. Our agent tried calling the sellers agent 3 times to find out about the Mitigation System and did not get a call back. The day before closing we met our agent at the home to see if any of the work had been done seeing that we were never consulted.
The seller had installed an Exterior Mitigation System, venting under the roof vent and 5 feet from an open window (Not in compliance with EPA standards). The water heater had not been fixed and we never received a report detailing the work done. To top it off the Mitigation Company is required to retest to insure that the system is doing it's job however, when we arrived at the property, every window in the place was wide open, including both attic access doors (Clearly the results were not going to be accurate). With a baby on the way in the next month were did not want to take the risk of being in a home where we were unsure of the air quality/safety.
Our agent called the seller's agent that evening to inform her that we were not going to close the following day because the agreement had been breached. She promptly hung up on him with out trying to work through the issues. The next morning I forwarded a mutual release form to the seller's agent indicating the breaches in contract and that we would like our earnest money returned.
The seller's didn't return the earnest money and are now stating that they are going to sue because we breached the contract by not closing on the agreed upon date. They are asking for the cost of repairs, earnest money and mortgage payments until they sell the property.
What are my options? Do they have a case? Can I sue for my earnest funds and possibly inspection and appraisal fees for their breach of contract?
Our contract states, "A material failure to perform any obligation here in is considered a breach which entitles the other party to terminate contract, request earnest money back and/or sue for damages."
I was in the process of purchasing a home when the seller failed to fulfill their obligations under our contract, so I forwarded an agreement for mutual release, requesting our earnest money back.
The home inspection report, stated that Radon levels were 3 times the EPA recommendations for residential homes, there was a leak in the roof which caused pretty severe rot, the water heater needed repair and a few other misc. items need repair/replacement.
Countering back to the seller because our agreement stated that the seller had the right to cure any defect, the seller agreed to the following in writing:
1. Install a mitigation system that will correct Radon levels to below EPA standard of 4pcl and to an agreed upon position and location prior to installation.
2. Repair all items that need to be fixed in the inspection report.
3. Present a report detailing the work done 3 days prior to closing.
4. Close on 9/21/06.
Needless to say, we were never consulted regarding the Radon Mitigation System. In fact, it was nearly impossible to gain access to the property to get any work done. Our loan officer called us 4 days prior to closing and stated that the appraiser had unsuccessfully tried to get into the property 2 times. Our agent tried calling the sellers agent 3 times to find out about the Mitigation System and did not get a call back. The day before closing we met our agent at the home to see if any of the work had been done seeing that we were never consulted.
The seller had installed an Exterior Mitigation System, venting under the roof vent and 5 feet from an open window (Not in compliance with EPA standards). The water heater had not been fixed and we never received a report detailing the work done. To top it off the Mitigation Company is required to retest to insure that the system is doing it's job however, when we arrived at the property, every window in the place was wide open, including both attic access doors (Clearly the results were not going to be accurate). With a baby on the way in the next month were did not want to take the risk of being in a home where we were unsure of the air quality/safety.
Our agent called the seller's agent that evening to inform her that we were not going to close the following day because the agreement had been breached. She promptly hung up on him with out trying to work through the issues. The next morning I forwarded a mutual release form to the seller's agent indicating the breaches in contract and that we would like our earnest money returned.
The seller's didn't return the earnest money and are now stating that they are going to sue because we breached the contract by not closing on the agreed upon date. They are asking for the cost of repairs, earnest money and mortgage payments until they sell the property.
What are my options? Do they have a case? Can I sue for my earnest funds and possibly inspection and appraisal fees for their breach of contract?
Our contract states, "A material failure to perform any obligation here in is considered a breach which entitles the other party to terminate contract, request earnest money back and/or sue for damages."
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